This paper presents a neoclassical model of international capital flows, public investment, and economic growth. Because public capital is non-traded and is imperfectly substitutable for private capital, the open economy converges only gradually to the Solow steady-state notwithstanding the fact...

Intro -- Abstracts -- Introduction -- 1 The Source of Historical Economic Fluctuations: An Analysis using Long-Run Restrictions -- Comment Harald Uhlig, Humboldt Universität zu Berlin, Tilburg University, Bundesbank, and CEPR -- 2 Optimal Monetary and Fiscal Policy in a Liquidity Trap --...

The current account deficit of the United States is more than six percent of its gross domestic product-an all-time high. And the rest of the world, including other G7 countries such as Japan and Germany, must collectively run current account surpluses to finance this deficit. How long can such...

Economic growth, low inflation, and financial stability are among the most important goals of policy makers, and central banks such as the Federal Reserve are key institutions for achieving these goals. In Asset Prices and Monetary Policy, leading scholars and practitioners probe the interaction...